New logos added (FY26)
80
+60 YoY
Includes 60 in AAA, 9 in infrastructure, 10 in BPS, and 1 in other segments.
3IINFOTECH
Information Technology
28 Apr 2026
3i Infotech Ltd — Q4 FY26
3i Infotech reported Q4 FY26 revenue of ₹175.7 crore, up 2.1% sequentially, with full-year revenue at ₹693.3 crore reflecting a deliberate degrowth strategy as the company exited low-margin contracts.
✓ Verified against BSE filing
2-Min Summary
3i Infotech reported Q4 FY26 revenue of ₹175.7 crore, up 2.1% sequentially, with full-year revenue at ₹693.3 crore reflecting a deliberate degrowth strategy as the company exited low-margin contracts. EBITDA for FY26 stood at ₹72 crore, up 53.3% YoY, with margins improving to 10.4% from 6.5% in FY25, driven by cost controls and a focus on profitability. The company added 80 new logos and achieved a 90% renewal rate in its AAA segment, while BPS faced headwinds from regulatory insourcing and AI-led automation. Management guided for a meaningful revenue step-up in FY27, driven by stronger sales execution and COE ramp-up, but did not provide specific numbers. Key risks include legacy contingent liabilities (~₹230 crore) and potential further BPS client churn.
Key Numbers
AAA renewal rate
90%
Flat YoY
AAA segment contributed 71% of total revenue; renewal rate reflects strong client retention.
Voluntary attrition rate
7.3%
-450bps YoY
Improved from 11.8% in Q4 FY25, indicating better employee stability.
DSO (days sales outstanding)
55 days
-10 days YoY
Improved from 65 days in FY25, reflecting stronger working capital management.
Management Guidance
FY27 revenue step-up expected
Management expects meaningful revenue growth in FY27 driven by stronger sales execution, COE ramp-up, and BPS repositioning from Q2 onwards.
revenueCOE framework fully operational by Q2 FY27
Centers of Excellence across all three business lines to be fully operational by end of Q2 FY27, targeting scalable and margin-accretive delivery.
expansionEBITDA margin target of 13-14% by 2030
Long-term target of early-teens EBITDA margin (13-14%) and higher single-digit PAT margin as part of Vision 2030.
marginsKey Risks
Legacy contingent liabilities
Contingent liabilities of ~₹230 crore (60% of market cap) from tax disputes and litigations (Rail, eMudra) could crystallize, though management expects no major hit in FY27.
high · analyst_questionBPS client churn and regulatory headwinds
BPS segment lost marquee clients due to RBI-mandated vendor churn every 3-5 years and AI-led automation, leading to revenue decline.
medium · management_commentaryRevenue growth execution risk
Despite internal aggressive plans, revenue remained rangebound in FY26; new sales team and COE ramp-up may take longer to deliver visible growth.
medium · data_observationNotable Quotes
We deliberately chose to return to this forum once we have meaningful progress to share and I believe today reflects that progress.
Profitability is no longer the question for us as we have already established a more consistent profitability trajectory. Our focus now is formally on accelerating revenue growth while maintaining margin discipline.
We have lost some good accounts there and the reason for that is the outsourcing policies of our regulators which is forcing the clients to look for a vendor replacement every 3 to 5 years period.